| Best
Voip Service Providers Chart |
 |
|
$9.95
- $16.58 |
|
 |
|
$19.99
- $39.99 |
|
 |
|
$9.95
- $15.95 |
|
Blue Tree Wireless Data Inc. second quarter revenues up 98%31 August 2006
Blue Tree Wireless Data Inc. ("BlueTree") is pleased to report on its financial and operating results for the second quarter ended June 30, 2006. All amounts are in Canadian dollars unless indicated otherwise.
Financial Highlights for the second quarter ended June 30, 2006
<<
- Second quarter ended June 30th, 2006
- Operating revenues were $912,164 for the second quarter in 2006, a
98% increase compared to $460,644 in 2005. This also represents a
sequential increase of 36% over the first quarter of 2006.
- Operating gross margin for the second quarter was $315,115 in 2006
compared to $94,587 in 2005. Gross profit margin as a percentage of
sales was 35% in 2006 as compared to 21% in 2005.
- Sales in the United States were approximately 52% of revenues in
2006 as compared to 49% in 2005.
- Six months ended June 30th, 2006
- Operating revenues were $1,582,770 for the six months ended June
30th 2006 compared to $888,919 for the same period in 2005,
representing an increase of 78%.
- Operating gross margin for the same period was $537,281 in 2006
compared to $221,940 in 2005. Gross profit margin as a percentage
of sales was 34% in 2006 as compared to 25% in 2005.
- Sales in the United States were approximately 58% of revenues for
this period in 2006 as compared to 45% in 2005
Business Highlights:
- The Company's new line of broadband EvDO rugged modems continued to
experience increasing market acceptance. Carrier network approvals were
received with Verizon building on the earlier approvals at Alltel and
Sprint. In Q2, sales of these product lines represented over half of
BlueTree's revenue and were deployed into mobile computing applications
with Public Safety and Field Service Automation customers.
- BlueTree entered into an agreement with Sony Ericsson Mobile
Communications ("SEMC") to develop, manufacture and sell successor
wireless modems to SEMC's GM and GT series modems. Subsequent to the
sale of the relevant business division to a third party, SEMC
terminated the arrangements, with the BlueTree receiving a settlement
amount.
>>
Second quarter ended June 30, 2006
Revenues
Operating revenues were $912,164 for the quarter ended June 30, 2006 as compared to $460,644 in 2005, representing an increase of 98%. The sales increase was driven primarily from strong market acceptance of the Company's new line of broadband EvDO modems launched earlier in the year. The modems were sold into meter reading, transportation and public safety markets. As a percentage of total revenues, sales in the United States represented 52% in the second quarter of 2006 compared to 49% for the same period in 2005.
Gross Margin
Operating gross margin was $315,115 in the second quarter of 2006 as compared to $94,587 for the same period in 2005. Gross margin as a percentage of sales increased to 35% for the period in 2006 from 21% for the comparative quarter ending June 30, 2005. The improvement in gross margin is directly related to the higher product mix of EvDO modems.
Research and Development Expenses
BlueTree's net R&D expenses were $131,385 for the second quarter of 2006, a decrease from $173,453 for the same period of 2005. The decrease is related to more focused development on the CDMA platform.
Selling Expenses
Selling expenses were $303,499 in the second quarter of 2006, a decrease from $384,332 for the same period in 2005. The decrease is primarily attributable to the Company making a conscious effort to reduce discretionary selling expenses including staffing, travel, entertainment and telecommunications to ensure closer alignment with our current sales performance.
Administrative Expenses
Administrative expenses were $162,609 in the second quarter of 2006, a decrease from $229,200 in 2005. The decrease was largely explained by reductions in consulting, audit and legal fees, shipping expenses and a reduction in fees relating to investor relations.
Net Loss
The operating loss before interest, foreign exchange and amortization for the quarter ended June 30, 2006 amounted to $281,228 as compared to $692,398 for last year. This operating loss in the second quarter of 2006 has decreased as compared to the loss of $346,457 in the first quarter of 2006. The net loss for the quarter ended June 30, 2006 was $376,663 as compared to $768,534 in 2005. The net loss in the second quarter of 2006 has decreased as compared to the loss of $424,052 for the first quarter of 2006.
Six months ended June 30, 2006
Revenues
For the six months ended June 30, 2005, operating revenues totalled $1,582,770 compared to $888,919 for the same period last year, representing an increase of 78%. Sales were positively impacted by the completion of the IP 4000 and GPS 5000 carrier approvals late in 2005, the launching our new line of broadband EvDO modems in January 2006.
Gross Margin
The operating gross margin was $537,281 for the six months ended June 30, 2006 as compared to $221,940 for the same period in 2005. Gross margin as a percentage of sales increased to 34% for the period in 2006 from 25% for the six months ended June 30, 2005.
Operating Expenses
Operating expenses decreased to $1,164,966 for the six months ended June 30, 2006 compared to $1,507,411 for the six months ended June 30, 2005.
Net Loss
The operating loss before interest, foreign exchange and amortization for the six months ended June 30, 2006 amounted to $627,685 as compared to $1,285,201 for last year. The net loss for the same period in 2006 was $800,715 as compared to $1,426,746 in 2005, representing a reduction of 43.9%. The decrease in the loss related to the higher sales and lower overall expenditures.
Liquidity
Cash and cash equivalents of BlueTree amounted to $630,658 as at June 30, 2006 as compared to $1,035,188 as at March 31, 2006. The decrease was directly related to the net loss for the second quarter of 2006. The Company's cash burn has actually decreased by 32% to $404,530 in the second quarter as compared to $597,766 in the first quarter of 2006. Management reduced inventory during the second quarter of 2006 from $560,787 to $504,288 and has taken action to continue to closely monitor and manage procurement, production planning and inventory levels
Forward-looking Statements
The statements in this report relating to matters that are not historical facts are forward-looking statements and are subject to important assumptions, risks and uncertainties, including, but not limited to, general business and economic conditions, the condition of the financial markets and the other risks and uncertainties detailed in Management's Discussion and Analysis and the risks factors described in our annual report for the year ended December 31, 2005.
About Blue Tree Wireless Data Inc.
BlueTree Wireless Data Inc. is a leading developer and manufacturer of wireless modems and software solutions for commercial and industrial applications. BlueTree Wireless's CDMA & GSM based modems are designed to operate on cellular networks worldwide enabling Mobile Computing and M2M applications in the Public Safety, Fleet Management, Field Service Automation, SCADA and Telemetry markets. BlueTree Wireless is publicly traded on the Canadian (TSX) Venture Exchange.
BlueTree Wireless Data has its main offices located in Montreal, Québec and Reston, Virginia, Please visit www.BlueTreeWireless.com for more information.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00018940EF
For further information: Mr. Michel Lazar, CA, Director of Finance & Controller, Blue Tree Wireless Data Inc., (514) 422-9110, Ext. 460, mlazar@bluetreewireless.com; http://www.bluetreewireless.com
Source: newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Telecom Articles
|
